Section 80C of Income Tax Act
Under Section 80C of the Income Tax, an individual can avail for deductions up to Rs 1,50,000 per annum on the total annual income. It is applicable only an Old Regime.
Section 80C and its subsections
| Sections | Eligible investments for tax deductions |
|---|---|
| 80C | Payments made towards life insurance premiums, payments made towards the principal sum of a home loan, SSY, NSC, etc... |
| 80CCC | Payment made towards pension plans, and mutual funds. |
| 80CCD (1) | Payments paid to government-sponsored plans such as the National Pension System, the Atal Pension Yojana, and others. |
| 80CCD (1B) | Investments of up to Rs.50,000 in NPS. |
| 80CCD (2) | Employer’s contribution towards NPS (up to 14% or 10%, comprising basic salary and dearness allowance, if any) |
Investment Options Under Section 80C
-
Repayment of Home Loan (principal amount)
-
Children’s tuition fees (for two children)
-
Public Provident Fund (PPF)
-
National Savings Certificate (NSC)
-
Employee Provident Fund (EPF)
-
Voluntary Provident Fund (VPF)
-
National Pension Scheme (NPS)
-
Five Year Tax Saving Fixed Deposit Schemes
-
Sukanya Samriddi Yojana (SSY)
-
Deposits with Housing and Urban Development Corporation Limited (HUDCO)
-
Unit Linked Insurance Plans (ULIP)
-
Life Insurance Premium paid (for self or spouse or children) to Life Insurance Corporation of India (LIC)
-
Investment in Bonds Investments in Mutual Fund/UTI Mutual Fund
-
Stamp Duty/Registration Fee/Other expenses related to purchase/construction of residential house
-
Senior Citizens Savings Scheme (SCSS)
-
Five – Year Post Office Time Deposit Schemes
-
NABARD Rural Bonds
-
Equity Linked Savings Scheme